RE: Bluesteele...Are you on crack? Toasted writes "So do us a favor and know what you're talking about before spouting off...."
Toasted you're nothing more than a plain idiot..... with the maturity of a small child! Now again read what the CEO and President of Rainy River Resources has to say about the newly discovered high grade Intrepid Zone and how they plan to to mine it with an underground portal.
A District, Not Just An OrebodyCEO Raymond Threlkeld Talks About Rainy River’s New Intrepid Zone
Kevin Michael Grace
November 14, 2012
Rainy River: 8.5 million ounces gold M&I plus inferred.
Rainy River Resources Ltd T.RR announced November 14 a $57.5-million bought-deal private placement to fund its Rainy River Gold Project (RRGP) and working capital. The agreement with National Bank Financial and BMO Capital Markets as co-lead underwriters will see the issuance of 10.5 million common shares at $5.50. The underwriters have the option to buy a further 1.6 million shares.
Also November 13, Rainy River announced the latest assays from its new Intrepid Zone, located one kilometre east of the proposed openpit boundary of RRGP. Highlights include
2.2 grams per tonne gold, 38.5 g/t silver over 18.5 metres
(including 6 g/t gold, 83.9 g/t silver over 3 metres)
4.3 g/t gold, 33.3 g/t silver over 18 metres
(including 8.4 g/t gold, 37 g/t silver over 6 metres)
3.8 g/t gold, 12.3 g/t silver over 10.5 metres
(including 8.3 g/t gold, 22.6 g/t silver over 3 metres)
RRGP comprises 16,530 hectares located 65 kilometres northwest of Fort Frances, near the Minnesota border. According to an October 10, 2012, 43-101 resource estimate, it contains 158.5 million tonnes grading 1.21 g/t gold and 2.62 g/t silver for 6.17 million ounces gold and 13.3 million ounces silver measured and indicated and 93.8 million tonnes grading 0.75 g/t gold and 2.32 g/t silver for 2.28 million ounces gold and 6.98 million ounces silver inferred. (Cutoff grades are 0.35 g/t gold openpit and 2.5 g/t gold underground.)
President/CEO Raymond Threlkeld spoke to Kevin Michael Grace November 8.
RW: Talk about the importance of the discovery of the Intrepid Zone.
RT: Last year, we focused on moving ounces from inferred into measured and indicated for a feasibility study. So we had 12 drillrigs working in the main orebody almost entirely. Then, right at the end of the year, we started looking at moving outward from the orebody. We did some geochemistry in the soils and looked at gold grain anomalies in the glacial till. There was one area to the northeast that looked interesting and had a good magnetic low signature.
We followed up and found this consistent dike-like body with good gold grades and very good silver grades. Silver grades are up to one ounce and maybe a little higher in places and anywhere from 2 to 6 grams gold.
Intrepid can possibly extend down to 1,200 or 1,300 metres below the surface. It is extremely exciting. We will plan for our feasibility study the development of an underground mine. And to access the underground in the main orebody, we actually have to drive the portal to the east and make a big loop and then come back under the openpit we’re planning. That portal access runs right through where we discovered Intrepid. We didn’t think we would have a contribution of underground ore until Year Three. This could potentially bring higher grade forward to Year Two and enhance the economics of the entire project.
RW: It’s quite conveniently located, in other words.
RT: Correct. We know the continuity of this zone right now is so good and the dip is wide enough that we can do probably some very low-cost bulk underground mining that would enhance the economics even more. We’re continuing with three drill rigs on Intrepid, and we’re going to systemically step out. We’ll see how far this goes, but we have an idea. Then, next year, we’ll probably need to infill because we want to get it into a mineplan as soon as possible. It won’t get into the feasibility study, but by the time we start construction, we’ll have it in a development plan so we know we can access that ore very rapidly. We’ll be coming out with news flow on how that works and perhaps do a little addendum to the feasibility study.
A District, Not Just An OrebodyCEO Raymond Threlkeld Talks About Rainy River’s New Intrepid Zone
Kevin Michael Grace
November 14, 2012
RW: Your Intrepid gold grades have been even higher than at your main resource.
RT: And the silver grade is almost 10 times higher.
RW: Was that a big surprise?
“There is the possibility that maybe we’re approaching another centre of mineralization. We like the looks of it very much. Maybe there is another type of orebody out there that is more base-metal rich with silver and a higher gold content”—Raymond Threlkeld
RT: There is the possibility that maybe we’re approaching another centre of mineralization. We like the looks of it very much. Maybe there is another type of orebody out there that is more base-metal rich with silver and a higher gold content. Those are all positive things.
RW: How is your feasibility study coming along?
RT: Very well. We’ve got the flowsheet designed; we have the geotechnical information for the pit slopes; and we’re designing the pit now based upon a new resource. We expect the grade will go up in the pit. Everything we’ve been doing is derisking but also making things better. That technical information will be done I would think in mid-December, and then we’ll go through peer and internal review, and that will take us into the end of 1Q. We’re on schedule.
RW: Your updated resource estimate of October 10 shows 6.2 million ounces gold M&I and 2.3 million ounces inferred.
RT: For the feasibility study, we’ve added another 70,000 metres of drilling, and we’ll show some significant increases. This estimate demonstrates that as we’ve moved ounces from inferred to measured and indicated, the grade has continually gone up. A lot of deposits don’t have that; they lose grade the tighter you drill.
RW: As you continue to drill, and taking into account the finding of the Intrepid Zone, it’s not unreasonable to think this could be a 10-million-ounce project, right?
RT: Not unreasonable at all because we have such great depth extent to the underground. We’ve drilled down to about 600 metres below the surface, and we know we have oreholes down to 1,200 metres. So that underground will double in time. I hate to give numbers, but I know we’re going to be greater than 10. Ten years from now, this could be a 15- to 20-million-ounce district. It is a district and not just an orebody.
RW: Do you think the market really appreciates what you have at Rainy River?
RT: Yes and no. Our shareholders certainly appreciate it, and they have been long-term shareholders. Others coming in certainly have an interest, but everybody is so risk adverse right now that no one wants to start buying in the market and driving share prices up. They all want to wait for a deal.
We have a share price that we obviously think will move as the gold price moves. The feasibility study will be a big derisking event, a kind of a milestone, and hopefully we’ll get some bumps there. It’s kind of a waiting game. I think our share price is going to get more expensive after feasibility, and so now is a good time to be getting in.
At press time, Rainy River had 89.4 million shares trading at $5.97 for a market cap of $533.6 million.